The UAE will levy excise tax on additional sugary and smoking products from next year in order to reduce consumption of these unhealthy products linked to chronic diseases.
The UAE Cabinet has approved a proposal to impose 50 per cent excise tax on products with added sugar and sweeteners, whether in the form of a beverage, liquid, concentrate, powders, extracts or any product that may be converted into a drink. While 100 per cent excise tax will be levied on electronic smoking devices - whether or not they contain nicotine or tobacco - liquids used in electronic smoking devices will also be levied the same tax.
From October 2017, the UAE started to levy 50 per cent "sin tax" on sugary and energy drinks and 100 per cent tax on smoking products in order to curb the consumption of these harmful products.
Since then, the sale of these goods have dropped by 65%, said Anurag Chaturvedi, managing partner at Chartered House Tax Consultancy